The Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016.
Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016
Introduction
The Aadhaar Act, 2016 was enacted by the Indian Parliament to provide legal backing for the Aadhaar program initiated by the Unique Identification Authority of India (UIDAI). Aadhaar is a 12-digit unique identity number issued to residents of India based on their biometric and demographic data.
The Act aims to facilitate targeted delivery of subsidies, benefits, and services to residents by establishing a robust identification system, thereby reducing fraud and ensuring efficiency in public service delivery.
Objectives of the Act
To provide a unique identity number (Aadhaar) to all residents of India.
To enable the targeted delivery of financial and other subsidies, benefits, and services.
To establish the Unique Identification Authority of India (UIDAI) as the statutory body responsible for Aadhaar issuance.
To ensure the security, privacy, and confidentiality of residents’ biometric and demographic information.
To prevent duplication and fraud in the delivery of government benefits.
Key Provisions of the Aadhaar Act, 2016
1. Establishment of UIDAI (Section 3)
The Act establishes the UIDAI as an autonomous statutory authority under the Central Government.
UIDAI is responsible for enrolling residents, assigning Aadhaar numbers, and managing the Aadhaar database.
2. Aadhaar Number and Its Use (Section 4, 7, 8)
Every resident is entitled to obtain an Aadhaar number.
Aadhaar number is a randomly generated 12-digit unique identifier linked to biometric and demographic data.
The Aadhaar number can be used by residents to authenticate their identity when availing government subsidies and services.
3. Targeted Delivery of Subsidies and Services (Section 7)
Aadhaar enables the direct transfer of subsidies and benefits to beneficiaries’ bank accounts.
It helps in eliminating duplicates and fake beneficiaries.
Aadhaar authentication is required for availing certain subsidies and services.
4. Privacy and Data Security (Section 29, 33)
The Act imposes strict confidentiality and security obligations on UIDAI.
Biometric and demographic information collected is protected by law.
Unauthorized access, use, or disclosure of Aadhaar data is punishable.
UIDAI must ensure data security and prevent misuse.
5. Authentication and Offline Verification (Section 9, 30)
Authentication can be done online using biometric or demographic data.
Offline verification methods, such as QR codes, are also authorized to protect privacy.
6. Penalty and Offenses (Section 34)
Penalties are prescribed for unauthorized enrollment, disclosure, or use of Aadhaar data.
Offenses can result in imprisonment or fines.
7. Exemptions (Section 7(2))
The Act allows for exemptions from Aadhaar authentication for certain services or residents, ensuring no denial of basic rights.
Significance of the Act
Provides legal recognition to Aadhaar, making it the backbone for efficient public service delivery.
Enhances transparency and accountability in subsidy disbursement.
Aims to reduce corruption and leakages in government schemes.
Strengthens digital infrastructure and promotes financial inclusion.
Relevant Case Law and Judicial Principles
1. Justice K.S. Puttaswamy (Retd.) vs. Union of India (2017)
The Supreme Court unanimously held that the right to privacy is a fundamental right under the Constitution.
It emphasized that any law or policy involving collection of personal data, including biometric data like Aadhaar, must have strict safeguards.
This verdict set the stage for reviewing the Aadhaar Act’s provisions on privacy and data protection.
2. Justice K.S. Puttaswamy (Retd.) vs. Union of India (Aadhaar Judgment, 2018)
The Supreme Court upheld the constitutional validity of the Aadhaar Act but with important restrictions and safeguards.
It ruled that Aadhaar can be mandatory only for welfare schemes and tax filings, but cannot be made compulsory for other private services like bank accounts or mobile connections.
The Court struck down Section 57 (which allowed private entities to use Aadhaar for authentication) as unconstitutional.
The judgment emphasized the need for proportionality, purpose limitation, and data security.
3. Justice K.S. Puttaswamy (Retd.) vs. Union of India (2022) – Aadhaar and Privacy
The Court reaffirmed the need for continuous review of data protection frameworks.
It urged the government to enact comprehensive data protection legislation to safeguard personal data.
4. Other Judicial Observations
Courts have consistently held that identity verification is important but must balance privacy rights.
In Anuradha Bhasin v. Union of India (2020), the Supreme Court reiterated that any use of biometric data must ensure protection from abuse and unauthorized access.
Summary
The Aadhaar Act, 2016:
Provides a statutory framework for issuing Aadhaar numbers to residents.
Enables efficient, transparent, and targeted delivery of government subsidies and benefits.
Establishes UIDAI as the regulatory authority.
Includes provisions for data privacy, security, and penalties against misuse.
Has been upheld by the Supreme Court with important safeguards to protect privacy and prevent abuse.
RELATED Blog
0 comments